Is Business Coaching Tax deductible

Is Business Coaching Tax deductible

30 August 2023

Maximizing Growth and Savings: How Business Coaching Can be Tax Deductible


In the ever-evolving landscape of entrepreneurship, business coaching and mentoring have emerged as invaluable tools for nurturing growth, enhancing leadership skills, and achieving sustainable success. What’s more, the benefits of business coaching extend beyond professional development – they can also translate into financial savings. This article delves into the realm of tax deductions, exploring how the investment in business coaching and mentoring can be leveraged to optimise real growth while reducing tax liabilities.

Calculating the actual cost of Business Coaching

A 19% (at time of writing) corporation tax will be saved at year end followed by dividend tax (the amount you extract from the business which will be anywhere between 20-50%) so on average Business Coaching will cost YOU the business owner around half of the advertised cost.

Unleashing Your Full Potential: The Power of Business Coaching

Business coaching and mentoring have gained prominence as catalysts for major personal and professional growth. Company owners seek guidance from seasoned experts who can offer insights, strategies, essentially and ideally from mentors who have walked their walk and been in their shoes. Business mentors and coaches provide tailored solutions that address specific pain points, making it easier for businesses to navigate obstacles and find new paths toward success.

Claiming Growth as an Investment: Tax Deductions Simplified

What many entrepreneurs might not realise is that the expense incurred for business coaching and mentoring programs can be tax deductible. The Intland revenue allows business owners to deduct certain educational expenses that directly relate to their trade or business. When business coaching or mentoring directly contributes to maintaining or improving skills necessary for your business, the costs associated with these services can be eligible for tax deductions.

Qualifying for Tax Deductions: Key Considerations

  1. Ordinary and Necessary: To be eligible for tax deductions, business coaching and mentoring expenses must be considered ordinary and necessary within the context of your trade or business. This means the coaching should be relevant and reasonable for your industry and the challenges you’re facing. Tradecoach Business Coaching provides just this!
  2. Directly Related to Business: The coaching should have a direct connection to your business operations. It should aim to enhance skills, improve decision-making, or address specific issues that are hindering growth. Tradecoach Business Coaching provides just this!
  3. Maintaining or Improving Skills: The Taxman requires that the coaching or mentoring contributes to maintaining or improving skills relevant to your business. It shouldn’t be aimed at acquiring new skills unrelated to your current trade business. Tradecoach Business Coaching provides just this – you get the jist right?
  4. Growing Your Business While Saving on Taxes

Investing in business coaching not only aids in refining your business strategies and l
leadership skills but also presents an opportunity to reduce your tax burden. By leveraging tax deductions, entrepreneurs can effectively lower their taxable income, resulting in reduced tax liabilities. This means that while you’re actively working on growing your business, you’re also saving money that can be reinvested into further expansion.

Documenting Your Deductions: Best Practices

To maximize your tax deductions related to coaching and mentoring, it’s essential to maintain thorough documentation. Keep records of invoices, receipts, contracts, and any correspondence that outlines the purpose and benefits of the coaching. This documentation will serve as evidence in case of an audit and substantiate the claim that the expenses were incurred for the purpose of business growth.

Consulting a Professional: Expert Financial Advice

Navigating the complexities of tax deductions and business expenses can be overwhelming. To ensure you’re adhering to tax laws and optimizing your deductions, it’s prudent to consult a certified tax professional or an accountant. These experts can provide tailored guidance based on your specific circumstances, helping you make informed decisions about claiming deductions for business coaching and mentoring expenses.


Embracing the transformative power of business coaching and mentoring isn’t just a strategic move for your business growth; it’s also a savvy financial decision. By recognizing the tax deductibility of these investments, entrepreneurs can simultaneously enhance their skills and reduce their tax liabilities. As you chart the course for your business’s success, remember that the journey can be not only rewarding but also economically advantageous.